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vladimir1956 [14]
3 years ago
14

Carmel Corporation is considering the purchase of a machine costing $41,000 with a 8-year useful life and no salvage value. Carm

el uses straight-line depreciation and assumes that the annual cash inflow from the machine will be received uniformly throughout each year. In calculating the accounting rate of return, what is Carmel's average investment? Multiple Choice
A. $5,125.
B. $23,063.
C. $41,000.
D. $5,766.
E. $20,500.
Business
1 answer:
Andru [333]3 years ago
3 0

Answer:

E. $20,500

Explanation:

The average investment is defined as the average between the initial investment and the salvage value of the equipment.

In this situation, Carmel Corporation had an initial investment of $41,000 for the machine and its salvage value is zero. Therefore, Carmel's average investment is:

AI = \frac{\$41,000+0}{2} \\AI = \$20,500

The answer is alternative E. $20,500

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Anthony is deciding between different saving accounts at his bank.he has four options,based on how frequently interest compounds
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Based on the Taylor Rule use the following information to calculate the target federal funds rate.
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8.0 %

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Forrester Company is considering buying new equipment that would increase monthly fixed costs from $276,000 to $544,500 and woul
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Answer:

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Sheffield Company purchases $50,300 of raw materials on account, and it incurs $63,900 of factory labor costs. Supporting record
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Answer:

Work-in-process - Assembly Department  $64,160 (debit)

Work-in-process - Finishing Department  $38,080 (debit)

Overhead $102,240  (credit)

Explanation:

Assembly Department Costs Assignments

J1 : Raw Materials

Work -in-process $27,100 (debit)

Raw Materials (credit)

J2 : Labor

Work -in-process $40,100 (debit)

Salaries and Wages Payable $40,100 (credit)

J3 : Overheads

Work-in-process  $64,160 (debit)

Overhead $64,160 (credit)

Finishing Department Costs Assignments

J1 : Raw Materials

Work -in-process $23,200 (debit)

Raw Materials $23,200 (credit)

J2 : Labor

Work -in-process $23,800 (debit)

Salaries and Wages Payable $23,800 (credit)

J3 : Overheads

Work-in-process  $38,080 (debit)

Overhead $38,080  (credit)

Summary of assignment of overhead

Work-in-process - Assembly Department  $64,160 (debit)

Work-in-process - Finishing Department  $38,080 (debit)

Overhead $102,240  (credit)

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